Advancing Innovation in Jakarta’s MSMEs: Addressing Key Challenges and Support Mechanisms

Yanto, Budi Harsono and Hasim Ashari
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Yanto: Lecturer at University of Muhammadiyah Prof. Dr. HAMKA, DKI Jakarta, Indonesia
Budi Harsono: Senior Lecturer of Moestopo Beragama University, Jakarta, Indonesia
Hasim Ashari: Staf of the Ministry of Agriculture, DKI Jakarta, Indonesia

International Journal of Research and Innovation in Social Science, 2025, vol. 9, issue 3, 768-779

Abstract: This research aims to develop a comprehensive strategy to overcome the limitations of current support mechanisms for MSMEs (Micro, Small, and Medium Enterprises) in Jakarta, focusing on enhancing innovation and sustainable growth. The study employs a qualitative descriptive approach, utilizing case studies, in-depth interviews, focus group discussions, and document analysis to gather data from various MSMEs and stakeholders in Jakarta. Findings: The study identifies key barriers to innovation faced by MSMEs, including limited access to finance, inadequate technological adoption, insufficient infrastructure, and complex regulatory frameworks. Sector-specific challenges were also highlighted, such as supply chain disruptions in manufacturing, e-commerce integration issues in retail, and climate change impacts in agriculture. The research reveals that a multifaceted strategy is essential to address these barriers effectively. Conclusion: To support MSMEs in Jakarta, a comprehensive strategy is necessary, encompassing enhanced access to finance through microfinance options and crowdfunding platforms, increased government grants and subsidies for innovation, and the development of digital literacy programs. Establishing technology hubs and business incubators can provide access to cutting-edge technologies and mentorship. Infrastructure investments in reliable internet and logistics, simplification of regulatory processes, and consistent policy implementation are crucial. Additionally, skill development through training and mentorship, promotion of industry clusters and public-private partnerships, and fostering an innovation culture through challenges and awareness campaigns are vital. Implementing these strategies can create an enabling environment for MSMEs to overcome current limitations, achieve sustainable growth, and contribute to Jakarta’s economic dynamism.

Date: 2025
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